The Limpopo standing committee on public accounts (Scopa) ordered the provincial Treasury on Friday to strengthen its capacity and help its sister departments manage their finances.
The committee issued an order to acting provincial Treasury head Gavin Pratt after it deemed the department “ineffective”.
“Treasury literally failed to put measures in place to... bar officials (from doing) business with government,” committee chairman Derrick Ngobeni said.
“You (Treasury) exist so that you (can) put all departments and public entities in government, to make sure that there is system in place that financial matters are accounted properly.”
Ngobeni said the Treasury was the only department, established through the Constitution, that could provide guidelines for other departments.
The Treasury was summoned to appear before Scopa to account for its expenses for the financial year ending March 2012.
The provincial Treasury under-spent R33 million of its budget and incurred a debt of R260,000.
Pratt said the Treasury under-spent because it could not fill vacant posts in the department.
Cabinet placed five Limpopo departments, including the provincial Treasury, under administration in December last year.
The province had requested a bailout of at least R700 million or an advance from Finance Minister Pravin Gordhan, after banks refused to give departments loans because they had exceeded their overdraft facility. - Sapa